Aluminum extrusions sit on a conveyor belt. (Representational purposes)
Credit: Reuters File Photo
Bengaluru: Aluminium extrusions manufacturers have demanded the government to relook at the free trade agreement (FTA) with Asean and United Arab Emirates (UAE). According to the domestic aluminium extrusions makers, China is dumping its finished aluminium goods in the Indian market through Vietnam and Malaysia using India’s FTA at zero duty. At the same time, Indian manufacturers are forced to pay 8.25% duty to the government which makes them uncompetitive against China in the global markets.
“Indian manufacturers are paying 7.5% duty on raw materials and 10% surcharge totaling 8.25% as against duty exemption offered by the government in China. This makes our products expensive when compared to Chinese finished goods thereby causing loss of market for Indian producers. We have urged the government to re-look at the FTA with Asean and UAE so that China stops dumping its products in the Indian market,” Ankur Aggarwal, general secretary, Aluminium Extrusion Manufacturers Association of India (ALEMAI) told DH.
Chinese manufacturers are sending their products to Vietnam, repackaging them there and exporting them to India at zero duty, he said.
There is a need to put in place safeguards in free trade agreements with Far East countries and other nations to revive domestic units.
He also urged the government to reduce duty on raw materials so that Indian producers get a level playing field in the international markets and compete with China, ALEMAI President Jitendra Chopra said.
India’s aluminium extrusion market stood at $3.51 billion in 2024 and is projected to reach $4.61 billion by 2030, growing at a CAGR of 4.5%. While north India remains the dominant market, the southern region, led by Karnataka, is now recognised as a major growth corridor.
However, the industry players remain concerned about global headwinds, including volatility in raw material prices, high energy costs, and the recently announced 50% tariff on aluminium products from India by the US administration could impact export competitiveness, Chopra said.
“The biggest challenge is the under-utilisation of domestic manufacturing capacity due to cheap imports. The total installed aluminium extrusion capacity in India is 3.5 million tonnes per annum, but the utilisation is only around 2 million tonnes, with the remaining 1.5 million tonnes imported. There is a need to put in place safeguards in FTAs with Far East countries and other nations to revive domestic units,” Chopra said